Would you like more useable space in your house? Then, naturally, it’s worth building an extension to that building. Another great advantage of doing this is that it can significantly add to the property’s value. That could turn out to be incredibly useful should you decide to sell the property at some future point; however, not all extensions are equal in how much value they could add. For this reason, we’ve decided to investigate how extensions can differ in this particular respect.
Various promising figures about the potential of extensions
You might remember news earlier this year revealing some pretty specific figures for how much extensions could boost a home’s value. Those figures came from the Nationwide Building Society, which had calculated that, on the basis of average house prices in the UK, an extra bathroom could grow a property’s value by 4.9% or £9,600, while adding 10% extra floor area could lead to an additional 5.1% or £10,000 to its worth. In general, extending a home could add 22% or £42,700 to its value, the Nationwide report found.
Going into a deeper analysis, Nationwide discovered that, while adding to the floor area to accommodate an extra, third bedroom spanning 13 square metres could make a terraced house 10% more valuable, the growth in worth would be 13% when this specific type of extension is for a semi-detached home. Meanwhile, if the upgrade was for a fourth bedroom, the rise would be 10% for a terraced property, 9% for a semi-detached one and 9% for a detached house.
There are many different factors to consider
However, for many of us, these figures still won’t come close to clarifying exactly how much we could stand to gain from an extension for our own homes. That’s because the precise rise in value that an extension could bring can depend on a myriad of factors. Robert Gardner, chief economist at Nationwide, has part acknowledged this, explaining: “Location remains key to house values, but other factors such as the size of the property, including the number of bedrooms it offers, are also important to home buyers.”
Still, if you are eager to add as much value as possible to your humble abode by arranging for an extension, then make sure that the extension will be genuinely functional; in other words, not just redundant space. Gardner has said that home buyers are willing to shell out more for a property with more usable space, as this has often been associated with higher quality accommodation in general. He noted that homeowners providing an “extension incorporating a double bedroom and a bathroom can add more than 20% to the value of a three-bedroom, one-bathroom house.”
How location plays a part
If your property’s location is particularly in-demand, with relatively high house prices as a result, then an extension will add much more value to your home than it would were you to reside in an unsightly inner-city location. In fact, if your house is in the latter, we regret to inform that you might want to reconsider building an extension at all – as the costs of an extension could end up outweighing any extra value that it would bring.
Your property’s location will also influence the type of buyer who would be most interested in your house – and this, in turn, will influence what kind of extension you should opt for. If, for example, you have a family-sized home in a quiet, leafy area, then additional bathrooms and large kitchens would be perhaps the wisest extensions. However, if you live in a more hectic, urban area, adding a garage to the property could better boost its value.
Your journey towards ensuring the best possible return on investment
You will, therefore, have to meticulously judge which extension to go for in order to maximise your return on investment. Another way of encouraging the best possible ROI is turning to our industry professionals here at My Build Estimate for an accurate estimate of how much the extension will cost you to build. That’s because this move can prevent you spending more money than you strictly need to… and, indeed, also prevent you spending less than the minimum necessary for a good job.
The estimates that we provide for self-builders are fast and reliable – and the professionally produced estimate we give you can enable you to see exactly where the costs will break down for material and labour. It can also help you to thoroughly evaluate your budget.